HK Stock Market Move | TSUGAMI CHINA (01651) rose by more than 4%, with Daiwa pointing to it as one of the beneficiaries of investment in AI infrastructure for machine tools.

TSUGAMI CHINA (01651) rose by more than 4%, as of the time of writing, it was up by 4.14%, at 67.9 Hong Kong dollars, with a turnover of 86.35 million Hong Kong dollars. On the news front, Daiwa released a research report stating that it reiterated a "buy" rating for TSUGAMI CHINA and raised the target price from 77 Hong Kong dollars to 80 Hong Kong dollars. At the same time, they raised the earnings forecast per share for the fiscal year 2027-28 by 4%. The bank believes that Tsugami Machine Tool is one of the key beneficiaries in AI infrastructure investments. Demand for AI liquid-cooled quick disconnect couplings remains strong, and management has stated that orders for the fiscal year 2026 have reached around 1,000 units, with expectations for a doubling in the fiscal year 2027, mainly driven by deployments related to Nvidia's GB300. According to the financial report previously disclosed by Tsugami China, the company achieved revenue of 5.184 billion yuan in the fiscal year 2026, a year-on-year increase of 21.6%; net profit attributable to the parent company was 1.094 billion yuan, a strong increase of 39.9%, with both revenue and profit setting historical records. The profit growth rate significantly outpaced the revenue growth rate. The company continued its tradition of generous dividends, distributing a final dividend of 0.9 Hong Kong dollars per share, in addition to an interim dividend of 0.6 Hong Kong dollars per share, with a total dividend payout of 1.5 Hong Kong dollars per share for the full year.